HOW DO YOU DEAL WITH AN OWNER THAT ASKS YOU TO PUT MONEY UPFRONT IN A BANK ACCOUNT?
I'm in advance discussion with an owner. We signed an NDA, he shared detailed financial information, I visited his offices, I visited some of his clients and we are starting to discuss price.
I sent him a LOI. The only thing missing in it is the price which we are currently discussing.
He says that two of his advisers said that I should put 15% of the amount upfront in a bank account.
Additionally, he says that if the deal falls apart, he should be compensated for his time and costs.
I am sure lots of you had to go through a similar situation. Anybody could share experiences and how they dealth with it? Best practices?